Under a General Partnership, Who Has First Priority in the Event

question 15

Multiple Choice

Under a General Partnership, who has first priority in the event of liquidation of assets?

• A) Partner creditors
• B) Partners, according to profits
• C) Partners, according to capital contributions
• D) Outside Creditors

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Definitions:

Plant Asset

A long-term tangible asset used in the operation of a business that is not intended for sale.

Book Value

The net value of a company's assets, subtracting liabilities from the total assets; also refers to the value of an asset as per accounting records.

Natural Resources

Materials or substances such as forests, minerals, and water that occur in nature and can be used for economic gain.

Standing Timber

Trees that are still standing and have not yet been harvested, often considered as an asset.